Texas Pacific Land Corporation Acquires Permian Mineral Interests and Surface Acreage in Cash Transactions

Mineral interests in the Delaware Basin (Graph: Business Wire)

TPL acquired mineral interests in approximately 4,106 net royalty acres located in Culberson County, Texas. The acquired mineral interests overlap existing TPL royalty acreage in current and anticipated Drilling and Spacing Units (“DSU”), which increases TPL’s net revenue interests in existing and future oil and gas wells. The acreage is leased to and operated by Coterra Energy (NYSE: CTRA). In addition, the acquired mineral interests overlap with TPL surface acreage.

The acquired surface asset comprises approximately 4,120 acres in Martin County, Texas and is strategically located in the core of the Midland Basin. The asset generates numerous revenue streams in water supply, produced water disposal and multiple other surface-related activities, including royalties from a solid waste landfill owned and operated by Waste Connections, Inc. (NYSE: WCN), and possesses significant additional commercial growth opportunities.

“Acquiring high-quality mineral interests in the northern Delaware Basin and strategic acreage in the Midland Basin will be immediately accretive to TPL’s free cash flow,” said Tyler Glover, the company’s Chief Executive Officer. “The combined asset purchase price implies a free cash flow yield of greater than 13% in 2025 at current strip prices, considering only existing producing and line-of-sight wells and opportunities. These bolt-on transactions, in addition to the cash flow currently generated, have excellent growth qualities that are consistent with TPL’s legacy portfolio. By owning overlapping and proximate surface and water assets, we believe we can accelerate development and generate incremental value. Both of these assets were acquired through our industry and professional networks and were not part of a broad commercialization process. These types of premium assets, located in core subregions of the Permian Basin, represent the growth opportunities available to TPL that can be a substantial incremental value accretive to our legacy asset base.”

About Texas Pacific Land Corporation

Texas Pacific Land Corporation is one of the largest landowners in the state of Texas with approximately 873,000 acres of land in West Texas, the majority of which is concentrated in the Permian Basin. The Company is not an oil and gas producer, but its surface and royalty ownership provides revenue opportunities throughout the life cycle of a well. These revenue opportunities include fixed fees for the use of our land, revenue from the sale of materials (caliche) used in the construction of infrastructure, the delivery of well water and/or treated produced water, revenue from our oil and gas royalty interests, and revenue related to the discharge of saltwater on our land. The Company also generates revenue from pipelines, power lines and utilities, commercial leases and temporary permits related to various land uses, including midstream infrastructure projects and hydrocarbon processing facilities.

Visit TPL at http://www.TexasPacific.com.

View the source version on businesswire.com: https://www.businesswire.com/news/home/20240827099522/en/

The Texas Pacific Land Stock had fallen by 1.5% at the time of the news release. -0.39 % to 769.3US dollar at the Lang & Schwarz stock exchange (August 27, 2024, 10:18 PM).

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